2 weeks ago

Small car demand surges in India after three-year gap

Small car demand surges in India after three-year gap
After a gap of 3 years, demand for small cars comes back · thehindubusinessline.com

For a few years, not many people in India were buying small cars.

Now, after three years, people want them again.

In just four months, sales of small cars more than doubled.

The most popular small cars are made by Maruti Suzuki and Renault.

A big reason for this change is a new tax rule that made cars cheaper.

The leader of Maruti Suzuki says this helped their sales grow a lot.

Small cars are often the first car a family buys.

They are important because they help many families get around safely.

The company thinks even more people will buy small cars in the future.

This is good news for car makers and for families who want a car.

Key facts

Entry-level sales (Apr-Jul FY26-27)
58,109 units
Entry-level sales (Apr-Jul FY25-26)
28,193 units
Alto and S-Presso sales
56,391 units, up 114% y-o-y
Renault Kwid sales
1,718 units, down 7% y-o-y
Mini segment sales FY2025-26
1,17,584 units, down ~12% y-o-y
GST rate change date
September 22, 2025
MSIL Q1 sales growth
38% (industry 28%)
Projected car industry size by FY2030-31
6.1-6.3 million units

Quotes

Hisashi Takeuchi

Managing Director and CEO, Maruti Suzuki India

“Small cars have historically democratised mobility in India and have served as the first step into car ownership for millions of families. Their recovery is important not only for the automobile industry, but also for expanding access to safer and more comfortable mobility across society.”
thehindubusinessline.com
“The sales of small cars grew 17 per cent in the second half of last year but grew 35 per cent in quarter one (Q1) this year as more cars required by customers could be produced.”
thehindubusinessline.com

Sources

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